Pakistanis living abroad sent the most cash back home in a single month in July, the first month of fiscal year 2021, at $2.77 billion, the State Bank reported on Monday.
The cash that people working outside their home countries send back home is known as workers’ remittances. Pakistan’s workers’ remittances were also an all-time high in June at $2.5 billion and this increased 12.2% in July.
July’s remittances improved by 36.5% compared to remittances recorded last July, which were $2 billion.
“Given the impact of COVID-19 globally, this increase in workers’ remittances is encouraging. The growth rate in remittances compared to the same month in the previous year is around twice as high as the Eid-ul-Azha related seasonality typically experienced over the last decade,” the State Bank said.
Remittances received from Saudi Arabia were the highest at $821.6 million followed by the UAE ($538.2 million), UK ($393.9 million) and US ($250.6 million).
The State Bank said in its press release that several factors have likely supported the growth in remittances, including orderly exchange rate conditions and policy steps taken by the Bank and the federal government under the Pakistan Remittance Initiative.
These steps include reducing the threshold for eligible transactions from $200 to $100 under the Reimbursement of Telegraphic Transfer (TT) Charges Scheme, an increased push towards adoption of digital channels, and targeted marketing campaigns to promote formal channels for sending remittances.